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Wednesday, 27 February 2013

The thieves at the top are after our cash

Talk about a desperate, cash-strapped Federal Government. Where is our money safe these days (under the mattress?). The old saying "Safe as a bank" apparently no longer applies if you stash your cash in an interest bearing account and leave it for a rainy day:

HOUSEHOLDS face losing up to $109 million from
their family savings as the Federal government moves to seize cash from
inactive bank accounts.

After legislation was rushed through
parliament, the government will from May 31 be able to transfer all money from
accounts that have not been used for three years into their own revenues.

This will mean that accounts with anything from
$1 upwards that have not had any deposit or withdrawals in the past three years
will be transferred to the Australian Securities and Investment Commission.

The law is forecast to raise $109 million this
year as inactive accounts for three years or more are raided by Treasury.
OPINION: Just another boost for the coffers

The money can be reclaimed from ASIC but the
process can take months.

Experts warn this will have a negative impact
on people that may have put money away in a special account for their
children's education or decided to put an inheritance in a separate account for
a rainy day.

The previous legislation allowed for bank
accounts to remain inactive for up to 7 years before the money was transferred
to ASIC.

Do you have a bank account you haven't used for
three years? If so, contact us at stephen.mcmahcon@news.com.au Australian
Bankers Association chief executive Steven Munchenberg said there is no benefit
for consumers from the changes.

"It is very hard to see why this needed to
be rushed through but there have been suggestions it was done more for the
government's own financial circumstances rather than customers needs," he
said.

Mr Munchenberg warned that unaware customers
face having accounts frozen and could face months of delays trying to reclaim
their won money from ASIC.

This cash grab comes as economists warn the
government is on track to hand down a $15 billion budget deficit in May as
company tax receipts collapse.

The government had also been committed to
surpluses in future financial years, too.

But despite the introduction of some tough
cost-cutting measures, the latest research from global bank UBS forecasts the
May budget will show a $12 billion black hole in revenues and cost overruns of
about $3 billion. The biggest pain is coming from the expected $8 billion fall
in taxes from the corporate sector.